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Full text of "North Carolina Register v.3 no. 4 (5/16/1988)"



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MAV i.Q 19 gg 
LAW LIBRARY 



The 



NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



^v/strn!^ 



EXECUTIVE ORDER 

PROPOSED RULES 
Commerce 
Elections 
Housing Finance 
Human Resources 
Insurance 
Secretary of State 
State Personnel 

LIST OF RULES AFFECTED 



ISSUE DATE: MAY 16, 1988 
Volume 3 • Issue 4 • Pages 119-145 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North 
Carolina Register is available by yearly subscription at 
a cost of ninety-five dollars (S95.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 davs, 
whichever is less. An agency adopting a temporary rule 
must begin normal rule-making procedures on the per- 
manent rule at the same time the temporary rule is 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules of 
25 state agencies and 38 occupational licensing boards. 
The NCAC comprises approximately 15,000 letter size, 
single spaced pages of material of which approximate- 
ly 35% is changed annuallv. Compilation and publica- 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Each 
state agency is assigned a separate title which is fur- 
ther broken down by chapters. Title 21 is designated 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimum 
cost of two dollars and 50 cents (S2.50) for 10 
pages or less, plus fifteen cents ($0. 1 5) per each 
additional page. 

(2) The full publication consists of 52 volumes, 
totaling in excess of 15,000 pages. It is sup- 
plemented monthly with replacement pages. A 
one year subscription to the full publication in- 
cluding supplements can be purchased for 
seven hundred and fifty dollars (S750.00). In- 
dividual volumes may also be purchased with 
supplement service. Renewal subscriptions for 
supplements to the initial publication available. 

Requests for pages of rules or volumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pro- 
cedures to be followed. For specific statutory language, 
it is suggested that Articles 2 and 5 of Chapter 150B of 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue, 
page number and date. 1:1 NCR 101-201, April 1, 1986 

refers to Volume 1, Issue 1, pages 101 through 201 of 
the North Carolina Register issued on April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Statutes. 
Subscriptions ninety-five dollars (S95.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
(S750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 




Office of Administrative Hearings 

P. O. Drawer 11666 

Raleigh, VC 27604 

(919) 733- 2678 



Robert A. Melott, 

Director 
James R. Scarcella, Sr. 

Deputy Director 
Molly Mason, 

Assistant Director 

Staff: 

Ruby Creech, 

Publications Coordinator 

Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial .Assistant 
I atarsha Roberts, 

Records Clerk 



ISSUE CONTENTS 



I. EXECUTIVE ORDER 

Executive Order 72 119 

II. PROPOSED Rl LES 

Commerce 

Milk Commission 120 

Elections 

State Board of Elections 120 

Human Resources 

Medical Assistance 121 

Independent Agencies 

Housing Finance Agency 134 

Insurance 

Fire and Rescue Services 122 

Secretary of State 

Securities Division 125 

State Personnel 

State Personnel Commission 135 

III. LIST OF RULES AFFECTED 

May 1, 1988 137 

IV. CUMULATIVE INDEX 144 



NOR III CAROLINA REGISTER 

Publication Deadlines and Schedules 
(March 1988- March 1989) 



Issue 


Last Dav 


I ast Day 


Farliest 


* 


Date 


for 


for 


Date for 


Earliest 




tiling 


Electronic 


Public 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


******** 


******** 


******** 


******** 


*******! 


03 15 SS 


02 24 SS 


03 02 88 


04 14 SS 


07 0188 


04 04 88 


03 11 SS 


03 IS SS 


05 04 88 


OS 01 88 


04 15 SS 


03 25 SS 


04 01 SS 


05 15 SS 


08 01 88 


05 02 8S 


H4 11 SS 


04 18 88 


06 01 SS 


09 01 88 


05 16 8S 


04 27 SS 


05 03 SS 


06 15 SS 


09 01 88 


06 01 SS 


05 10 88 


05 17 88 


07 01 SS 


10 01 88 


06 15 SS 


05 26 SS 


06 02 SS 


07 15 SS 


10 01 SS 


07 01 SS 


06 10 88 


06 17 SS 


07 31 SS 


11 01 88 


_ 15 SS 


06 24 SS 


07 01 88 


OS 14 SS 


11 01 SS 


OS 1 SS 


07 11 SS 


07 IS 88 


OS 31 SS 


12 01 88 


OS 15 SS 


07 26 88 


08 02 88 


09 14 SS 


12 01 88 


09 01 88 


OS 11 SS 


us IS SS 


10 01 88 


01 01 89 


09 15 SS 


08 26 88 


04 02 88 


10 15 88 


01 01 89 


10 03 88 


09 12 SS 


09 19 88 


1 1 02 SS 


02 01 S9 


10 14 SS 


09 26 88 


10 03 88 


11 13 88 


02/01 89 


11 01 88 


10 11 88 


10 18 88 


12/01/88 


03 01 89 


11 15 88 


10 26 88 


1 1 02 88 


12 15 SS 


03 1 89 


12 01 88 


11 07 88 


11 15 88 


12 31 SS 


04 01 89 


12 15 SS 


1 1 23 SS 


12 02 88 


01 14 S9 


04 01 89 


01 02 S9 


12 08 88 


12 15 88 


02 01 S9 


05 01 89 


01 16 89 


12 27 SS 


01 03 89 


02 15 89 


05 01 89 


02 01 89 


01 10 89 


01 17 89 


03 03 89 


06 01 89 


02 15 S9 


01 26 S9 


02 02 89 


03 17 89 


06/01 89 


03 01 89 


02 08 89 


02 15 89 


03 31 89 


07 01 89 


03 15 SQ 


02 21 S9 


03 02 SQ 


04 14 89 


07 01 89 



* The "Earliest Effective Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the ride with The Administrative Rules Review 
Commission by the 20lh of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



EXECUTIVE ORDER 



EXECUTIVE ORDER NUMBER 72 

AMENDMENT TO EXECUTIVE ORDER 

NUMBER 53 

GOVERNOR'S INTER-AGENCY ADVISORY 

TEAM ON ALCOHOL AND OTHER DRl G 
AMI SE 



Section 



The Governor's Inter-Agency Advi- 



sory Team on Alcohol and Other Drug Abuse 
was created bv Executive Order Number 53 dated 
July 30, 1987' 

Section 2. Section 3(d) of that executive order 
is amended to read as follows: 



(d) travel and subsistence expenses 
incurred by the Chairman of the Ad- 
visory Team shall be paid, as directed 
by the Director of the Budget, from 
funds available to the agencies and 
departments represented on the Ad- 
visory Team. 

Section 3^ All other provisions of [-"xccutive 
Order Number 53 shall remain in effect. 

Done in the Capital City of Raleigh, this the 
26th day of April, 1988. 



NORTH CAROLINA REGISTER 



119 



PROPOSED RULES 



TITLE 4 - DEPARTMENT OF COMMERCE 



fied milk, sterile milk, reconstituted milk 
and concentrated milk. 



No 



oticc is hereby given in accordance with G.S. 
150B-12 that the North Carolina Milk Commis- 
sion intends to amend regulation cited as 4 XCAC 
7 .0504, a i and (a)(1). 



Th 



he proposed effective dale of this action is 
September I. 19S8. 

1 he public hearing will be conducted at 10:00 
a.m. on June 17, 1988 at Room 313". Dobbs 
Building, 430 X. Salisbury Street. Raleigh, XC 
27611. 



Cc 



omment Procedures: Written comments, data, 
opinions and arguments concerning the proposed 
amendments must be submitted by June 15, 1988, 
to the Xorth Carolina Milk Commission, 430 N. 
Salisbury Street. Raleigh. XC 27611, Attention 
Grady Cooper, Jr., Executive Secretary. 

CHAPTER 7 - MILK COMMISSION 

SECTION .0500 - MARKETING REGl LATIONS 

.0504 CLASSIFICATION OF MILK 

(a) Class I. Class I shall include the product 
weight of all fluid milk, fluid milk products, (in- 
cluding products sweetened or flavored), all skim 
milk and butterfat which is sold or disposed of 
for consumption or use as processed fluid milk 
products under any trade name (regardless of 
grade), except buttermilk disposed of in bulk to 
commercial food establishments for use on the 
premises in the production of soup, candy, 
bakery products or any other non-dairy food 
products, milk shake mix. heavy cream, medium 
cream, half and half, one-half ounce coffee 
creamers, eggnog, and any other cream items 
which are classified in a lower class and military 
sales approved for Class IA. The following pro- 
visions are also applicable to Class I: 

( 1 ) Class I includes, but is not limited to, the 
following type milk products; pasteurized 
milk, homogenized milk, raw milk, whole 
lactic milk, buttermilk, plain and flake 
buttermilk, (except buttermilk disposed 
of tor the purposes described in (aj of this 
Rule) lowfat flavored fresh milk. lowfat 
flavored reconstituted or recombined 
milk, lowfat white reconstituted or re- 
combined milk, skim milk, fortified skim 
milk with added solids, chocolate or fla- 
vored milks or milk drinks, dietary modi- 



Statutory Authority G.S. 106-266.8(3), (7), 
(10). 

TITLE 8 - STATE BOARD OF ELECTIONS 



iV otice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the State Board of Elections intends 
to adopt regulations cited as 8 XCAC 8 .0004; 9 
.0001 - .0005. 



1 he proposed effective 
September 1, 1988. 



date of this action is 



1 he public hearing will be conducted at 11:00 
a.m. on June 15. 1988 at Conference Room 812, 
State Board of Elections. Raleigh Building. 5 

West Hargetl Street. Raleigh. Xorth Carolina 
27601. 

C_. omment Procedures: Statements may be 
made in person at the hearing or written com- 
ments may be filed at any time prior to date of 
hearing, on date of hearing, or at any time up to 
30 days following the hearing. Mail written com- 
ments to: 

State Board of Elections 
Post Office Box 1/66 
Raleigh. XC 27602 

CHAPTER 8 - COMPLIANCE WITH FEDERAL 

P.I. 98-435: THE VOTING ACCESSIBILITY 
FOR THE ELDERLY AND HANDICAPPED ACT 

.0004 HANDICAPPED TRANSFER PRIOR 
TO ELECTION DAY 

(a) At any time during the period of absentee 
voting in any primary, general or special election, 
a handicapped or elderly voter registered in a 
precinct wherein there exists no polling place ac- 
cessible to the elderly and handicapped may re- 
quest in advance to be transferred from that 
precinct to the office of the county board of 
elections for the purpose of voting at the county 
board of elections on election day under the fol- 
lowing procedure: 

( 1 i An application to be transferred in ad- 
vance to the county board of elections for 
the purpose of voting on election day shall 
be made and signed only by the voter or 
the voter's near relative, as defined in G.S. 
163- 227(c)(4), or legal guardian and shall 
be valid only when transmitted to the 
chairman or supervisor of elections of the 
county board of elections by mail or de- 



120 



XORTH CAROLINA REGISTER 



PROPOSED RULES 



livcrcd in person by the voter or his near 
relative or legal guardian. 

(2) Upon rcecipt of a written request for 
transfer, the county board of elections, 
after determining the validity of such re- 
quest, shall enter the voter's name and 
precinct into the book referred to in Rule 
.0001(a)(6) of this Chapter and shall place 
the designation "HI" beside the voter's 
name as it appears on registration records 
sent to that voter's precinct for use on 
election day. 

(3) No voter who has requested advance 
transfer shall be allowed to vote on 
election day at that voter's precinct if the 
designation "HT" appears on the records 
of that precinct, but instead shall be di- 
rected to the offices of the county board 
of elections. 

(4) On election day, the precinct transfer as- 
sistant at the county board of elections, 
when the elderly or handicapped voter 
appears and indicates that advance request 
for transfer was made, shall verify such 
fact by reference to the book referred to 
in Rule .0001(a)(6) and, having deter- 
mined that such request was made, shall 
provide the voter with the proper ballots 
and follow the procedures set forth in 
Rule .0001 (a)(5)-(9). 

Statutory Authority G.S. 163-69.2. 

CHAPTER 9 - CONDUCT OF VOTE RECOUNTS 
BY COUNTY BOARDS OE ELECTIONS 

.0001 RECOUNTS TO FOLLOW CUSTOMARY 
PROCEDURES 

Except as provided to the contrary in this 
Chapter, a recount of votes and publication of 
results shall be undertaken in the same manner 
and under the same circumstances as provided 
by law for the original counting of votes. 

Statutory Authority G.S. 163-179.1; 163-192.1. 

.0002 LOCATIONS OF RECOUNTS 

Upon receiving a demand for recount of votes, 
if the demanding candidate is entitled by law to 
a recount or if a county board of elections deter- 
mines that a recount is otherwise in order, the 
board shall set a date, time, and place for such 
recount. The board shall determine that all votes 
cast shall be counted at a central location, that 
they shall be counted in the precincts in which 
they were cast, or that they shall be counted at a 
combination of these and other locations where 
vote tabulation normally occurs. 



Statutory Authority G.S. 163-179. 1; 163-192. 1. 

.0003 NOTICE OF RECOUNT 

Upon deciding the date, time, and place of a 
recount of votes, a county board of elections 
shall give notice to any candidates whose votes 
will be recounted and to any other candidate or 
other person determined by the board to be suf- 
ficiently interested in the outcome of such re- 
count. The county board shall give such notice 
in any form that is reasonably calculated to reach 
such persons and shall advise such right of their 
designees to be present to witness the recount of 
votes. 

Statutory Authority G.S. 163-179.1; 163-192.1. 

.0004 OFFICIALS CONDUCTING RECOUNT 

In recounting votes, a county board of elections 
may employ the services of as many elections 
officials and ballot counters as it deems neces- 
sary. In no event, however, shall votes be re- 
counted in the precincts in which they were cast 
unless the registrar and both judges of said pre- 
cinct are present for the entire period during 
which votes are recounted and the results are re- 
corded. 

Statutory Authority G.S. 163-179.1; 163-192. 1. 

.0005 CHALLENGE OF RECOUNT 
PROCEDURES 

In the event that any candidate for an office for 
which votes have been recounted challenges the 
results of such recount or the manner in which 
votes were recounted, the candidate shall, within 
24 hours, file his protest with the county board 
of elections. Protests of recounts shall be in the 
same form as provided for other protests and 
shall be heard by the county board in the same 
manner as provided for other protests. 

Statutory Authority G.S. 163-179.1; 163-192.1. 

TITLE 10 - DEPARTMENT OF HUMAN 
RESOURCES 

1\ otice is hereby gh'en in accordance with G.S. 
I SOB- 12 that the Department of Human 
Resources! Division of Medical Assistance intends 
to amend regulation cited as 10 NCAC 26G .051 1 . 

1 he proposed effective date of this action is 
September 1, 1988. 

1 he public hearing will be conducted at 1:30 
p.m. on June 15, 1988 at North Carolina Division 



NORTH CAROLINA REGISTER 



121 



PROPOSED RULES 



of Medical Assistance, 1985 I' instead Drive. 
Room 201, Raleigh, SC 27603. 



Cc 



omment Procedures: Written comments con- 
cerning this amendment must be submitted by 
June 15. 1988 to: Director. Dh'ision of Medical 
Assistance. 1985 Lmstead Drive, Raleigh, AC 
2~603. Oral comments may be presented at the 
hearing. In addition, a fiscal impact statement 
on this proposed rule is available upon written re- 
quest from the same address. 

CHAPTER 26 - MEDICAL SERVICES 

SUBCHAPTER 26G - PROGRAM INTEGRITY 

SECTION .0500 - PEER REVIEW 

.051 I PEER REVIEW PROCEDURES 

( f) '44ae provider shall have 44 day; , from receipt 
&£ thi* findings, conclusions. a«4 recommen 
dations h* which to- f44e with toe Deputy Director 
t*f- t4*e Division ef M e dical Assistanc e * written 
rebuttal &f comment. This response may »«4 
contain n e w evidence. -4aV Deputy Director 
must consider to/e rebuttal before making a- doci 
s+©*t- **«■ tbe board s recommendations. 44*e Dep 
taty Dir e ctor shall mak e a determination a* to 
what, if fH+y-r sanctions, remedial measures and or 
recoupment actions shall be imposed H+a a pro 
■i ider. 4-be Deputy Director shall hav e t4*e aw- 
thority to impose sanctions, remedial measure '. 
and or recoupment actions against a provider. 
4-he Deputy Director « t*e* bound by tke b eafd s 
recommendations: be is bound bv to/e board's 



findings ef Sa€+ aft4 conclusions regarding medical 
issues, a'ab/e Deputy Director's decision shall be- 
m wnting aft4 shall contain a statement e+" tke 
providers' right to request a contested ea^e hear 
i«e ift accordance with Ae provisions ©f 4-0 
NCAC 4-ft ^mOr ?4ae provider skali have 44 
working days , to request a contested eaae hearing. 
I nless t4w request ia rec e iv e d within tb_e tim e 
prescrib e d, the Deputy Director's decision w+44 
become t4*e Division s final decision. 4» 



e ssing t4ae contested eaae request, tbe Director e£ 
t4*e Division ef Medical Assistance shall serve a* 
(4+e secretary's designee a«4 shall be responsibl e 
tof making ?4ae final agency decision. The Divi- 
sion of Medical Assistance shall have the au- 
thoritv to impose sanctions, remedial measures 
and or recoupment actions against the provider. 
I he Division of Medical Assistance is not bound 
bv the Peer Review Board's recommendations; 
it is bound bv the board s findings of fact and 
conclusions regarding medical issues. The Divi- 
sion of Medical Assistance's decision shall he in 
writing and shall contain a statement of the pro- 
vider's provisions of 10 NCAC J_B .0200. The 



provider shall have 15 working davs from receipt 
of this letter to request a contested case hearing. 
Unless the request is received within the time 
prescribed, the Division of Medical Assistance 
decision will become the division's final decision. 
In processing the contested case request, the Di- 
rector ^ the Division of Medical Assistance shall 
serve as the secretary's designee and shall be re- 
sponsible for making the final agency decision. 

Authority G.S. W8A-25(b); 150B-11; 42 CF.R. 
Part 455: 42 CF.R. Part 456. 



TITLE 11 - DEPARTMENT OF 
INSURANCE 

Jyotice is hereby given in accordance with G.S. 

I SOB- J 2 that the Department of Insurance intends 
to adopt, amend, and repeal regulations cited as 

II SCAC 5 .0105, .0403 - .0404: 7 .0101, .0105. 
.0201 - .0203, .0301 - .0306. 

1 he proposed effective date of this action is 
September 1, 1988. 

1 he public hearing will be conducted at 10:00 
a.m. on June 15. 1988 at Third Floor Hearing 
Room. Dobbs Building, 430 N. Salisbury Street, 
Raleigh, X.C. 27611. 



Cc 



omment Procedures: Written comments 
should be submitted to Linda Stott, P.O. Box 
26387, Raleigh. N.C. 27611. Oral presentations 
may be made at the public hearing. 

CHAPTER 5 - EIRE AND RESCUE SERVICES 
DIVISION 

SECTION .0100 - GENERAL PROVISIONS 

.0105 TRAINING OPERATIONS 

to-f Local. Field personnel from ?4ae 6w a«4 
rescu e services division administ e r 'carious special 
programs across U» state concerning administra 
toa> a«4 technical aspects el fire fighting a«4 Fe-s- 
aae work. 

fba Statewide. 44a? following schools a*e beki 
annually fof state wide participation: 

f4-} North Carolina Rescu e Institute. 

(3) North Carolina Rescue Colleg e . 

(4a Southeast e rn Fmergency Car e Seminar. 

44 Statewid e Pump School. 
The Field Training Staff of the Fire and Rescue 
Division ot the Department of Insurance shall 
serve as staff to the State Fire Commission. Stalf 
duties shall include hut not be limited to the fol- 
lowing: 



122 



.XORTH CAROLLXA REGISTER 



PROPOSED RULES 



(1) Research and development of new tech- 
niques, tools, and procedures m order to 
develop specialized training tor firefighters 
as well as instructor training. 

(2) Provide input to the State lire Commission 
regarding changes in standards based on re- 
search. 



[3J Provide technical support to the State Fire 
Commission. 

(4) Evaluate and audit delivery programs when 
the State Pi re Commission requests and ap- 
proves such evaluations. 

[5) Plan, develop and deliver training programs 
for fire departments, rescue squads, colleges, 
universities and other governmental agen- 
cies. 

Statutory Authority G.S. 5S-9; 5S-27.33. 

SECTION .0400 - ADMINISTRATION OF 
OTHER FUNDS 

.0403 RURAL VOLUNTEER FIRE 
DEPARTMENT FIND 

The Rural Volunteer lire Department Fund 
shall be administered in accordance with the 
provisions of NCGS 1 18-50. 

Statutory Authority G.S. 118-50. 

.0404 RESCUE SQUAD WORKERS' RELIEF 
FUND 

The Rescue Squad Workers' Relief Fund shall 
be administered in accordance with the pro- 
visions of NCGS 118-60. 

Statutory Authority G.S. 118-60. 

CHAPTER 7 - STATE PROPERTY FIRE 
INSURANCE FIND DIVISION 

SECTION .0100 - GENERAL PROVISIONS 

.0101 DEFINITIONS 

The following definitions shall apply for this 
division: 

(1) "Agent of record" shall mean the North 
Carolina Association &£ Insurance Agents, 
Jfn?r that insurance agent or agents author- 
ized to represent the North Carolina De- 
partment of Insurance m procurement of 
insurance for North Carolina agencies. 

(2) "Self-liquidating buildings" shall mean 
buildings using their own revenues to retire 
their obligations. 

(3) "Special operating fund Fund Agencies " 
shall mean departments or agencies that re- 
ceive their operating revenue from sources 
other than the general fund. 



(4) "State property division" e* '-^be division" 
shall mean the state property foe insurance * 
fund division of the North Carolina Depart 
ment of Insuranc e . 

(5) "The fund" shall m e an the State Property 
•Ifoe Insurance Fund. 

(4) "Occurence" shall mean the total less by- 
imy- peril o* combination of perils insured 
against arising twt ef a singl e event. When 
the term applies to- fos* of losses from 
windstorm, hfok- riet attending » strike e* 
e+v+i commotion, k shall he hek4 to- i nclude 
those losses occurring e* commencing dur 
H+e, a p e riod of 34 consecutive hours. 

Statutory Authority G.S. 58-9; 58-191. 

.0105 BILLING 

A charge vv-th he made fef ah foe coverage pro 
vided special fund agencies *h4 self liquidating 
building '. . Aft additional charge w+h he levied to- 
ft department, agency Of institution requesting 
extended coverage, sprinkler leakage, business 
interruption ©f oth e r property insurance. Ah 
checks must he made payable to the North 
Carolina Department of Insurance. 

I pon the request of asy- state department, 
agency o* institution, the department may pro 
¥+4e coverage fof sprinkler leakag e , extended 
coverage, business interruption m+4 foe coverage, 
o* other property insurance from a- sp e cial fund 
o? self liquidating buildings. Rates fef t*«4 cov 
erag e s afe fixed by- the Commissioner ef Insur 
ance. 

A charge will be made by the State Property 
Fire Insurance Fund for fire coverage provided 



fund 



agencies, 



t-liquidating 



to special 

buildings, special fund buildings, and buildings 
utilizing funds from revenue-producing endeav- 
ors connected therewith, for operation or main- 
tenance. Rates for said coverages shall be fixed 
by the Commissioner of Insurance. 



Charges will be levied to agencies for requested 
extended coverage, 



sprinkler leakage, business 
interruption, or other property insurance. All 
checks must be made payable to the North 
Carolina Department of Insurance. Rates for 
said coverages shall be fixed by the Commis- 
sioner of Insurance. 



Statutory Authority G.S. 58-9; 58-190; 58-191.1; 
58-191.2; S.L. 1975, Ch. 875. 

SECTION .0200 - PLAN APPROVAL FOR STATE 
BUILDINGS 

.0201 PLAN REVIEW 



NORTH CAROLINA REGISTER 



123 



PROPOSED RULES 



Plans t++f Hew -. Kili ' ov . n e d buildings a«4 reno 
vations to existing buildings afe submitted to 4+e 
state property (.ii' i ii ' ion. 4-be divisum determines 
foto t-he mmiim i m requirements ef t4+e North 
Carolina Statu Building Cod e a«4 National fee 
Codes have boon compli e d with aftto » addition, 
requires greater than minimum feqwefftefits ift 
order to moot t-be standards to become injured 
by t-be Stat e Property Insurance ' bund. 

.-Ml plans and specifications for new state-owned 
buildings and renovations and additions to exist- 
ing buildings shall be submitted to the State 



Property 1 ire Insurance bund Division. The 

division shall determine whether the plans and 
specifications are in compliance with the mini- 
mum requirements of the North Carolina Build- 
inn Code and Standard 1 ire Codes. In addition, 
greater than minimum requirements nuv be re- 
quired m order to better assure protection for 
buildings and satetv of occupants, as well as to 
meet underwriting standards tor insurability . 
1 he Division shall inform the designer of code 
violations and deficiencies and anv corrections 
that nuv be necessary. I "pon final approval cA. 
the plans and specifications by \\\z division, let- 
ters of approval shall be sent to the designer and 
to the ( )llice of State Construction hi the De- 
partment of Administration. 

Statutory Authority G.S. 58-193. 

.0202 SUBMISSION OF PLANS 

(REPEALED) 
.0203 CORRECTION OF PLANS 

(REPEALED) 



Statutory Authority G.S. 58-193. 

SECTION .0300 - STATE PROPERTY FIRE 
INSURANCE FUND 

.0301 STATE PROPERTY LIKE 

INSURANCE FUND: PURPOSE 
AND El N'DING (REPEALED) 

.0302 REINS! RANCE (REPEALED) 

Statutory Authority G.S. 58-189 to 58-191.2; S.L. 
1975, Ch. S~5. 

.0303 LOSS ADJUSTMENT 

The staff of the state property division shall in- 
vestigates all losses reported to the department. 
The Commissioner of Insurance must shall make 
recommendations to the Governor and Council 
of State for any loss. 

I pon agreement between tF*e department a«4 
the agency suffering a lor .? ' . . e4" a settlement 
amount, the claimant must submit a 'Report 
«ft4 Proof «*£ 1 o ;■' • ■ Form" as described m 4-+ 



NCAC + .01( 1 6. Sato form must be sign e d by m 
authorized representative ei the agency »«4 fh- 
clude data fr support to the claim. If a tos* e*- 
ceeds the deductible. the agent ef record fof t-be 
department is notified se- tbat independent 
adjusters, representing reinsurance earners fof t-be 
state, may be consulted 

1 he claimant shall submit a "Report and Proof 
of I oss Form' 



in accordance 



with 



division 



cedures. Said lorm must be signed bv an am 
thon/ed representative of the agency and include 
data in support of the claim. 



Statutory Authority 
58-191.2. 



G.S. 58-191; 58-191.1; 



.0304 INSURANCE PLACEMENT OTHER 
THAN LNDER THE FLND 

■ Vgencies t*f departments r e questing insurance 
coverage Ftot e ligible under tbe Stat e Property 
b+te Insurance bund afe placed by t-be depart 
ment with its agent to r e cord, t-be North Carolin a 
Association ef Insurance Agents, baer ftje agent 
eF record contacts companies admitted to tto 
business » tbts state a«4 v. ith w hich the agent is 
licensed to obtain prop e r cosorag e . Upon ob- 
taining proper coverage, t-be policies i+«4 invoices 
tot toe policies ate submitted to toe state prop 
erty di' i ision. Invoices , we approved by tbe dn . i 
sum t+«4 seto to f-be agency requesting coverage. 
A-H- policies toF sato cov e rage afe retained fff t-be 
Department to Insurance, state property foe tH- 
surance fund division. 

to addition, G.S. 5S 1^1.1 requires state agen 
«es to provide automobile liability coverag e t*« 
ab motor vehicles. afto tbe above procedure is 
used to provide ttos coverage. 

Insurance coverage which is requested bv agen- 
cies, but which is not available under the State 
Property Fire Insurance Fund, is placed bv the 
division through the Agent of Record. "1 he 
Agent of Record shall acquire coverage from 
companies licensed to do business m North 
Carolina whenever such coverage is available. 

Statutory Authority G.S. 58-9; 58-194.1; S.L. 
1975, Ch. 875. 

.0305 REVALUATION OF PROPERLY 

to order to comply with the conditions to~ the 
reinsurance contract, toe di' i ision constantly Fe- 
\ alu e s its e xisting properties. 

to to revaluation, the division uses aata lnchul 
FFFgr bto Ftto limited to eest anal) sis figures s«p- 
plied by lngineering News Record as to initial 
escalation figure .. . comparativ e et-to escalation 
figures b*f current construction costs. a«4 depre 



124 



SORTH CAROLISA REGISTER 



PROPOSED RULES 



ciatum lac ton . , according to building tvp e , a* es- 
tablished by national apprai - Htl buix'aun. 

In the revaluation of property, the division shall 
use recognized standards and methods tor com- 
puting replacement costs of real and personal 
property. Such methods may include, but are 
not limited to, factors of inllation and current 
construction indices. 



Statutory 

58- 10 1. 2. 



luthority G.S. 58-191; 58-191.1; 



.0306 INSPECTION OF STATE-OWNED 
BUILDINGS 

44tt» General Statute ''. of North Carolina r e quire ' 
t+K+t- dp . I '. ion pi ' p i onne ' l inspect '. tatc - nwnoJ 
building '. *t- l e ast onc e e ' ach ; . ear. Of <** often »* 
h» d e emed ne ' Ce ';i ; i iir> by toe di' i p . ion, to ensure 4+e 
safety of 4*e building ; ) of occupant ;, the » rein, of 
both. ( )n ' / l ite 1 nv i pc - ctionii ttft* mad e on- each 
building tm4 an evaluation &f condition ' . , of (4+e 
building h» made ' . ha - i ' d ort among other thing :. , 
tfee North Carolina State Building Code. NLI'A 
Lir e Codes, »o4 othe'r technical code" . . To insure 
the safety of the buildings and occupants therein, 
on-site inspections of state-owned buildings are 
made as required by statute to determine prop- 
erty conditions. 

Upon completion of its inspection and evalu- 
ation of fire and other safety hazards, the division 
will report, verbally or in writing or both to the 
authority in charge of the agency, institution or 
department. Said authority is responsible for 
correction of any deficiencies which may have 
been found by the division in accordance with 
the applicable General Statutes. 

Statutory Authority G.S. 58-193. 

TITLE 18 - SECRETARY OF STATE 



iV oticc is hereby given in accordance with G.S. 
150B-1 2 that the Securities Division - Department 
of Secretary of State intends to amend regulations 
cited as 18 NCAC 6 .1101, .1104. .1202 - .1203. 
.1205 - .1206. .1209. .1301, .1303 - .1305. .1307 - 
.1308, .13/0. .1313, .1316. .1401 - .1402. .1406 - 
.1407, .1409 - .1410. .1414. .1504. .1509: repeal 
regulation cited as 18 NCAC 6 .1312; and adopt 
regulations cited as 18 NCAC 6 .1317 - .1318. 

1 he proposed effective date of this action is 
September I, 1988. 

1 he public hearing will be conducted at 9:30 
a.m. on June 16, 1988 at Securities Division. De- 



partment of the Secretary oj Slate. Room 404, 
300 N. Salisbury St., Raleigh. NC 27611. 

K^ommenl Procedures: Comments in the form 
of data, opinions, and arguments may be submit- 
ted to the Securities Division in writing prior to 
June 15, 1988, or orally at the hearing. 

CHAPTER 6 - SECURITIES DIVISION 
SECTION .1 100 - GENERAL PROVISIONS 

.1101 LOCATION AND HOURS 

The Securities Division of the Department of 
the Secretary of State is located in Room 404? 
404, Legislative Office Building, 300 North 
Salisbury Street, Raleigh, North Carolina 27611. 
Office hours for the public arc 8:00 a.m. to 5:00 
p.m. Monday through Friday, except state holi- 
days. 

Statutory Authority G.S. 147-36: 78A-49(a). 

.1104 DEFINITIONS 

(c) "Direct Participation Program" shall mean 
a pro izra in which provides for now-through tax 
consequences regardless of the structure of the 
legal entity or vehicle for distribution including, 
but not limited to. oil and gas programs, real es- 
tate programs, agricultural programs, cattle pro- 
grams, condominium securities. Subchapter S 
corporate olienngs and all other programs of a 
similar nature, regardless of the industry repres- 
ented by the program, or any combination 
thereof. A program may be composed of one 
or more legal entities or programs but when used 
herein and in any rules or regulations adopted 
pursuant hereto the term shall mean each of the 
separate entities or programs making up the 
overall program and or the overall program itself 
1 xcluded from this definition are real estate in- 
vestment trusts, tax qualified pension and profit 
sharing plans pursuant to Sections 401 and 
403(a) of the Internal Revenue Code and indi- 
vidual retirement plans under Section 40 8 o[ that 
Code, and any company registered pursuant to 
the Investment Company Act of l'MO. 

(-ei (d± "SLC" shall mean the Securities and 
Lxchange Commission. 

kH (£1 "NASD" shall mean the National Asso- 
ciation of Securities Dealers, Inc. 

(e} (fj_ "NASAA" shall mean the North Ameri- 
can Securities Administrators Association, Inc. 

f£> (g) "CRD" shall mean the Central Registra- 
tion Depository. 

fg) (h]_ "Investment Contract" as used in G.S. 
78A-2(11) includes: 



NORTH CAROLINA REGISTER 



125 



PROPOSED RULES 



( I) Any investment in a common enterprise 
with the expectation of profit to be de- 
rived through the essential managerial ef- 
forts of someone other than the investor. 
In this Subparagraph a "common enter- 
prise" means an enterprise in which the 
fortunes of the investor are interwoven 
with and dependent upon the efforts and 
success of those seeking the investment 
or of a third party; and 
(2) Any investment by which an offeree fur- 
nishes initial value to an offeror, and a 
portion of this initial value is subjected to 
the risks of the enterprise, and the fur- 
nishing of this initial value is induced by 
the offeror's promises or representations 
which give rise to a reasonable under- 
standing that a valuable benefit of some 
kind over and above the initial value will 
accrue to the offeree as a result of the op- 
eration of the enterprise, and the offeree 
does not receive the right to exercise 
practical and actual control over the 
managerial decisions of the enterprise. 
<4++ (lil h+ Gee> Income Security" shall mean 
*fty security v . hich constitutes «« interest m h+1 
t*f *** prop e rti e s v . Inch a*e acUialh . producing 

Q ■ I I ~» C I t i - ■ t t I \ . t i in ■ . n.'h ■ i . ■ i i n t \ ■ t i- .-.•-»! 

I'll * r J _1 T^ CTT Ills. I 111 II. ''IT. IT 'IV I IT TT ^ r^ T^TTTT 

f++ Real l' -. tatL ' Security" '. hall mean any se- 
curity v . hich is en+ interest h+ » k mited t+f general 
partnership, joint \ oiil iiru. unincorporated asse 
ciiition &f similar organisation, oth e r than * e©f- 
poration. which vr formed em4 operated, f*f 
proposed k> be formed t+ttd operated. (+*+ the p«- 
mars puipose t-4 in 1 , cstment w+ tm4 t-he operation 
t4 t*f gain from *» interest m- Fer4 property m- 
cluding such entities that- make *f invent » 
mortgage loans. 

(i) "Recognized 



Securities Manila' 



snail mean 



a publication which contains the information re- 
quired bv (.) S TS.\- 1 "( 2)a. and which has been 
designated, bv Rile or bv order, as a "recognized 
securities manual" bv the administrator. 

f-)4 "Tux Shelt e r S e curity" ■■ hall mean rH+y *-e- 
cunty e+* t++ ' . vhich t-ke |irimary material benefit 
expected k+ be derived t*f promoted t++ be deni e d 
Irom tke- ov i nership t-4 the security * tke as ail 
ability k* t4+e person oss nine t-he security &f 4e- 
ductioii 'i from such person s income Bf cred i t '. 
against '. uch person s ta* fof lederal income t** 
pui-poso - j. 

Statutory Authority G.S. 78A-49(a). 



SECTION .1200 - EXEMPTIONS 
.1202 RECOGNIZED SECl RITIES MANUALS 



(a) The publications recognized by the admin- 
istrator as securities manuals for the purposes set 
forth in G.S. 78A-17(2) (a} a_ shall be: 

(1) Standard and Poor's Corporation Re- 
cords, 
fQ4 Standard an4 Poor' ;. Industrial Manual. 
P) (_2| Moody's Industrial Manual, 
f+f [3} Moody's Over-the-Counter Industrial 

Manual, and 
(4f (4| Periodic supplements to each recog- 
nized securities manual. 
Other publications may be recognized by the ad- 
ministrator, on a case bv case basis, upon a 
showing that the information required bv G.S. 
7SA- 1 7(2)a. is actually contained in the publi- 
cation. 

(b) None of the publications in Paragraph (a) 
shall be recognized as relating to the securities of 
a particular issuer unless all of the information 
required by G.S. 78A-17(2) ktj a. is contained 
in the publication, Other publications may ke 
recognized by- tkt» administrator, t*» a e**» by- 
ease basis, upon a shossing tkttt the information 
required by G.S. 78A P(2)(a) k actually con 
tained h+ t-he publication, and: 

(1) such information has been continuously 
published m that securities manual for at 
least fifteen months preceding the com- 
mencement of a distribution in reliance 
on G.S. ~V\-P(2)q.: or 

(2) during the 12 months preceding the com- 
mencement of a distribution m reliance 
on C j.S 7 S.-\- Pi 2 la., the issuer s common 
stock or equivalent security has traded at 
the price o\_ live dollars ( 'Jo.OP) or more 
per share for a period of at least 30 con- 
secutive days as quoted m The Wall Street 
Journal or similar national publication: 
or 

(3) as of the end of its most recent fiscal sear, 
the issuer had: 

(A) a tangible net worth (i.e.. net worth 
computed bv excluding intangible assets) 
of at least one million dollars 
ltl.000.00i>). and 

(B) net income, atter taxes, of at least one 
hundred and lifts thousand dollars 
( jiPO.nnO); or 

1 4) during the _1_2 months preceding a distrib- 
ution in reliance on (j.S. 7 SA-P(2)a.. the 
issuer completed a public offering of se- 
curities which raised at least five million 



dollars (SxOOO.OQP). 



Statutory 
78A-49(a). 



Authority G.S. 78A-17(2)a. 



.1203 INFORMATION FILED BV 



126 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



REGISTERED DEALER 

The exemption for nonissuer distributions, 
other than by a controlling person of an out- 
standing security, under G.S. 78A-17(2) (&) b. 
shall be applicable to the offer and sale of any 
security, the issuer of which is required to file re- 
ports under Section 13 or 15(d) of the Securities 
IZxchange Act of 1934, has been so required for 
at least 1 5 months prior to such sale and has filed 
all such required reports during such 15 month 
period if, prior to such sale, the registered dealer 
files with the administrator a statement certifying 
that copies of the following documents, and 
amendments thereto, with respect to the issuer 
of such security are on tile with the dealer: 



Statutory Authority 
7S A -49(a). 



G.S. 78A-17(2)b.; 



.1205 LIMITED OFFERINGS PI JRSUANT 

TO G.S. 78A-17(9) 

(a) Any issuer relying upon the exemption 
provided by G.S. 7SA-17(9) in connection with 
an offering of a security made in reliance upon 
Rule 505 or Rule 506 of Regulation D 
promulgated by the Securities and Exchange 
Commission under the Securities Act of 1933, as 
amended, 17 C.F.R. 230.505 (1982) and 17 
C.F.R. 230.506 (1982) (and as subsequently 
amended) shall comply with the provisions of 
Rules .1206, .1207 and .1208 of this Section: 
provided that such compliance shall not be re- 
quired if the security is offered and sold only to 
persons who will be actively engaged, on a regu- 
lar basis, in the management of the issuer's busi- 
ness; and provided further, that compliance with 
provisions of Paragraphs (a), (b), and (c) of Rule 
.1208 of this Section shall not be required if the 
security is offered to not more than five individ- 
uals who reside in this State. 

(b) Any issuer relying upon the exemption 
provided by G.S. 78A-17(9) in connection with 
an offering of a to* shelter security, ©4 »f gas m- 
aimi' security ef a- Fet4 e stat e security direct par- 
ticipation program security made solely in 
reliance upon an exemption from registration 
contained in Section 4(2) or Section 3(a)(ll) of 
the Securities Act of 1933, as amended, or made 
solely in reliance upon Rule 504 of Regulation 
D promulgated by the Securities and Fxchange 
Commission under the Securities Act of 1933, as 
amended, 17 C.F.R. 230.504 (1982), (and as 
subsequently amended), shall comply with the 
following conditions and limitations: 

(1) No commission, discount, finder's fee or 
other similar remuneration or compen- 
sation shall be paid, directly or indirectly, 
to any person for soliciting any prospec- 



tive purchaser of the security sold to a 
resident of this State unless such person 
is either registered pursuant to G.S. 
78A-36 or exempt from registration 
thereunder or the issuer reasonably be- 
lieves that such person is so registered or 
exempt therefrom. 
(2) L» aii sales »f re*4 estate securities, *4te 
provisions t4 Rule .1312 t4 44* Chapter 
regarding registered offerings t4 Wt4 e stat e 
securities shall be applicable. In all sales 
of direct participation program securities, 
the provisions of Rule .1313 of this 
Chapter regarding registered offerings of 
direct participation program securities 
shall be applicable. 
(44 L» *U- sales &f t*s shelter securities »f »4 
»f g*s income securities, tbe provisions &f 
Rule .1313 t+f (44* Chapter regarding reg- 
istered offerings (4 t*fc shelter securities 
tm4 t44 t+f ga* income securities shall be 
applicable. 
(-4-) £3} Any prospectus or disclosure document 
used in offering the securities in this State 
shall disclose conspicuously the following 
information: 
"TIIFSF. SFCCRITIFS ARP OFFFRFD 
ITRSl ANT 40 A CLAIM OP &X- 
1 M1TION UNDFR PHP NORTH 
CAROL I NA SI ■'( T Rll ILS AOP, 444P 
NORTH CAROLINA SFCCRITIFS AD- 
MINISTRATOR N LIT II I R RFCOM 
MLNDS NOR- FNDORSFS 444* 
PIRCHASL OP ANA SFCl RITV, NOR- 
HAS 444P ADMINISTRATOR PASSFD 
I PON PHP ACCr RACY OR A4AP- 
Ql'ACY OP PHP INFORMATION 
PROVIDLD I1LRLIN. AN-^ RFPRL 
SFNTATION 40 PHP CONTRARY JS 
A CRIMINAL OITTNSF". legend(s) re- 
quired by the provisions of Rule .1316 of 
this Chapter. 

Statutory Authority G. S. 78A-17(9); 78A-49(a). 

.1206 LIMITED OFFERING-EXEMPTION 
PURSUANT TO G.S. 78A-17(I7) 

(a) Transactions made in reliance upon Rule 
505 or Rule 506 of Regulation D promulgated 
by the Securities and Exchange Commission un- 
der the Securities Act of 1933, as amended, 17 
C.F.R. 230.505 (1982) and 17 C.F.R. 230.506 
(1982) (and as subsequently amended) shall be 
exempt from the requirements of G.S. 78A-24, 
provided there is compliance with the conditions 
and limitations of this Rule .1206 and Rules 
.1207 and .1208 of this Section. 



NORTH CAROLINA REGISTER 



127 



PROPOSED RULES 



(3) In all sales to those accredited investors 
defined in 17 C.I .R. 230.501(a)(5) an4 (6) 

who reside in this State (except sales to 
such accredited investors made by or 
through a dealer registered under G.S. 
78A-36) and in all sales to nonaccredited 
investors who reside in this State the 
issuer and any person acting on its behalf 
shall have reasonable grounds to believe 
and after making reasonable inquiry shall 
believe that one of the following condi- 
tions is satisfied: 
(4+ 4+> «b sales 64" Fe*4 e state securities pursuant 
to 4*e exemption pro' , ided by- to*. Rule 
■ 12' i 6, toe provi-ion - - . t4" ft+4e .1312 ef this 
Chapter regarding registered offerings t*£ 
f-e*4 estate securities ' hall be applicable h* 
addition to a44 other r e quir e ment ', t-4 toi-* 
R-toer-H4l4r 
(A+ l_4| In all sales of to* shelter securities &? 
etl 8* gas income direct participation pro- 
gram securities pursuant to the exemption 
provided by this Rule .1206, the pro- 
visions of Rule .1313 of this Chapter re- 
garding registered offerings of tern shelter 
securities *b4 h+1 h* gas income direct 
participation program securities shall be 
applicable in addition to all other require- 
ments of this Rule .1206. 
(-64 (_5) Any prospectus or disclosure document 
used in this State in connection with an 
offer and sale of securities made in reliance 
upon the exemption provided by this 
Rule .1206 shall disclose conspicuously 
the following information: 
'I III Sb . SI CIRIIII S ARA- OHTRrD 
PCRSl ANT 444 A CI AIM Ob to\- 
TMI'TION CNDbR 4444- NORTH 
CAROl INA STCrRITITS AtoT-. 444b 
NOR1 II CAROl INA ShCl RHUS AD- 
MINISTRATOR NTTTlIhR Rl COM 
MINOS XttR- TNOORSTS 444b 



PPR( HAST OP ANA SI (MRU V. A044 
HAN 444b- ADMINISTRATOR PASS1 D 
I TON 444b ACCURACY 044- A44J- 
QU.U \' Q4- 444b INFORMATION 
PROV1DFD IlbRl IN AN4^ Rl I'Rb 
SFNTAI ION 444 444b CON I RARV 4N 
A CR1MINAI Oil bNSb A legend! s) re_ 
quired hv the provisions o[ Rule .131 6 iM 
this Chapter. 

Statutory Authority G.S. 78A-17\ 17); 
7SA-49 a 

.1208 TRANSACTIONS EXEMPT I NDER 

R\ IK .1206: FILING REQl IREMENTS 



(a) Not less than 10 business days pnor to any 
sale of a security sold in reliance upon the ex- 
emption provided by Rule .1206 of this Section 
which shall include but not be limited to the re- 
ceipt by the issuer, or any person acting on the 
issuer's behalf of a signed subscription agreement 
of, or the receipt of consideration from, a pur- 
chaser, the issuer shall file with the administrator, 
or cause to be so filed, the following: 

( 1) A statement ' jign e d by 4*e issuer a+to ac- 
knowledged before a notary public - &e 
other similar officer: A form I) ( Notice 
of Sales of Securities Pursuant to Regu- 
lation D. _ .and or Uniform I imited Of- 
fering Txemption) All parts of this form, 
including the Appendix, shall be com- 
pleted. The Form D is to be signed by a 
person dulv authorized to do so bv the 
issuer, and shall be attached to a state- 
ment containing the supplemental infor- 
mation required by Paragraph (c) of this 
Rule. 
(-A4 identifying the issuer (including nam e , 
form t4 organization. ad4fess a«4 k4e- 
phnne number): 
H4+ identifying toe person! s) who w-44 be 
' jelling the securities h+ this State (and. m 
toe ease ef such persons oth e r than toe 
issuer a«4 4-t officers, partner '. et«4 em- 
plo; . ee ' j. describing their r e lationship with 
the issuer m- connection with t+ve trail : " . 
action sr4 the basis to their compliance 
with t*F exemption from the requirements 
to (AS. 7S , A 36) r*«4 describing a«y- com 
missions, di ; " . count;i. fee* e* other 
remuneration evf compensation to be pa+4 
to such persons: 
f€4 containing a rummaiy ©f Ae proposed 
offering including: 
(44 a description to toe seeunties to be 
■-.ol d- 
(4i4 toe num e (ii) el a44 general partners 
e4 a» issuer which is a partnership a«4r 
with respect to a corporate issuer t4f awy- 
eoiporate general partner! s) e4 any- 
ls . suer which is a partnership, 4ve 4toe 
a«4 place e4 mcoqioration a«4 t4*e 
nam e'. t*£ toe director; . a«4 executive 
officers to such corporation! s): 
ft«4 t4+e anticipated aggregate dollar 

amount to t4*e offering: 
(4to *be anticipated r e quired minimum 
inv e stm e nt, if at+y-r by- each purchaser 
to t4*e securities to be offered: 
(-to brief description to tb+e issuer's 
bu-ine -. s *h4 (4+e anticipated ase t-4 the 
proceeds f4 toe offering: a+to 



128 



SORTH CAROLIXA REGISTER 



PROPOSED RULES 



(b 



ft4} a list ef the -. tal e-. h+ which the se- 
curitics we proposed te be '. old; 

fFft; representing tftat the securities w+U be 
sold wt reliance upon a» e xemption from 
the registration requirements ef Section § 
et- the Si- ' CLiriticT i Aet ef W3, as amended; 

(4ft representing that, te the best t4 the 
issuer s knowledge, the issuer is net dis- 
qualified by the provisions t4 Rule . 1207 
ef- th+s Section from rels ing upon the e*- 
emption provided by Rule . 1 21)6 b4 th+s 
Section; *h4 

(+4 containing aft undertaking te furnish te 
the administrator, upon his written re- 
quest, evid e nce t-4 complianc e witli Sub 
paragraphs fjfc. frftr (-ft aftd (5) »f ft±4e 
.1206(a) ef this Section. 

\\ itlmi I i 1 . 1 ■ ■ \ ■ . - ■ ■ 1 1 . i «- tK. ■ 1 ■ , . t l ' 1 1. 1 lit tK,. .- . \ 



cunties. the hbhw shall We h+" cause te be filed, 
with the administrator: The issuer shall 

promptly file or caused to be filed with the ad- 
ministrator ,mv amended Form D tiled with the 
I S. Securities and Exchange Commission in 
connection with the transaction. 



W 



a copy e4 the final Form ft\ ft7- C . F R 
230. §03 ( W , 2). ef r«¥ successor form. 



tiled ef required t++ be tiled ftr the issuer 
Vr+th t-he Securities aftd Fxchanue Com 



mission; 



f3) a hst t4" the names *h4 addresses h+ pur 

chasers residing w- this Stat e ; aftd 

fft a statement t+f the aggregate dollar amount 

ef the securities sold t+t this Stat e . 

(c) To comply with Subparagraph (a)( 1 ) of this 

Rule, the issuer shall lile with the administrator 

a statement signed by a person duly authorized 

to execute such statement on its behalf contain- 



ing the following representations; 

(_]_[ that the securities will be sold in reliance 
upon an exemption from the registration 
requirements of Section 5 oi_ the Securities 
Act of l - 933 i as amended; 

(2) that, to the best of the issuers knowledge, 
the issuer is not disqualified by the pro- 
visions of Rule . 1207 of this Section from 
reiving upon the exemption provided by 
Rule .1206 of { Ml Section; 

(3) that the issuer will furnish to the adminis- 



trator, upon written request, evidence of 
compliance with Subparagraphs (2), (3), 
(4) and 121 °f Rulc -1206(a) of this Sec- 
tion; 

(4) that all persons who will be selling the se- 
curities m this state are in compliance with 
or exempt from the requirements of G.S. 
7SA-36; and 

(5) that the issuer will notify the administrator 
in writing of the names and titles of all 



officers, directors, partners, or employees 
of t_he issuer who will he engaged in the 
offer or sale of the securities in this state. 
Such notice to the administrator shall be 
made prior to any otter ot securities m this 
state. 
(e) [dj /Vny filing pursuant to this Rule .1208 
shall be amended by tiling with the administrator 
such information and changes as may be neces- 
sary to correct any material misstatement or 
omission in the tiling. 

(-tft 44+e administrator shall treat a* confidential 
aftd- wet subject te- public inspection the in for 
mation r e quir e d te be tiled pursuant te Subpara 
gfaph fftftO-} &f this Fftjft r440S unless he sbaU 
determine that such treatment is net consistent 
with the public interest, m- which ease he m#y 
make public such ef the tiled- infonnation as he 
fttay deem necessary fof- prot e ction ef the public 
interest. 

(c) The provisions of this Rule .1208 shall not 
apply to offers or sales of a security made pursu- 
nnt to Rule .1206 of this Section if the security 
is offered to not more than five individuals who 
reside in this state. 

Statutory Authority G. S. 78A-17(17); 
78A-49(a). 

.1209 NONPROFIT SECURITIES 

(c) Where appropriate. The nonprofit issuer 
should provide each offeree a written document 
providing full disclosure of all material facts. A 
prospectus, pamphlet, circular or similar litera- 
ture providing the following minimum disclo- 
sures, if applicable, normally will suffice for this 
purpose; provided, however that nothing in this 
Paragraph shall be construed as in any manner 
relieving any person from the full disclosure re- 
quirements of G.S. 78A-8(2): 
( 1 ) The Cover or First Page: 

(G) 4-he following lantiuaa e shall app e ar wt 
boldface type-" FHFSF SF( IRHHS 
IIAVF ftOft KPFN RFGISLFRFD 
I NHPR 444ft NORTH CAROLINA 
SFCl RITIPS Aft-ft HFING ft>ft 
FMPIFD FROM RFGIS 1 RA 1 ION 
ttV-<4 T S T 7SA 16(U) Qft444F-A^Fr 444ft 
AVAIFABIFITY Oft THAT ft^ft 
FM1TION DOFS JvOft MFAN LHA 1 
444ft SFCTR1F1FS ADMINISLRA 
444ft F4A& PASSFD ftv A^v¥ WAV 
IPON 444ft Ml RILS Oft Ql Al 1 
I 1CATIONS 04- Oft RFCOM 
MFNDFT) Oft G1VFN APPROVAL 
44ft 444ft ISSLFR. LHFSF: SFCIR1 
ftftftOft 111F1R OFI.'IiR AXft SAI F. 
AXft RFPRFSFNLATION INCON 



NORTH CAROLINA REGISTER 



129 



PROPOSED RULES 



SIS I I M Wl I II 4-144- bORbGOlNG 
^v CM AWM4 .; The appropriate dis- 
claimer and or legend, pursuant Hi the 
provisions of Rule .1316 o[ this Chapter, 
shall appear m boldface tvpc; 
(11) Financial Statement: 

(D) If applicable, the number of pledging 
units and the average annual contribution 
per pledging unit. 
In lieu ot the disclosure document as described 
m this Paragraph, the issuer may use a disclosure 
document prepared in accordance with the 
Church Bond Guidelines prepared bv NASAA 
published at ^4^ ,4 C-444 4k** Skv i-aw Par. 
U'lll o{ (~C:iI NASAA Reports, as may be 
amended from time to time, where such guide- 
lines are applicable. 

Statutory Authority G.S. 78.4-/6(9); 78A-49(a). 

SECTION .1300 - REGISTRATION OF 
SEC I RITIES 

.1301 REGISTRATION BY NOTIFICATION 

Application for registration by notification shall 
be tiled with the administrator using the Regk 
tration 4y Notification form. I "niform .Applica- 
tion to Register Securities ( l'orm I - 1 1. 
Documents necessaiy to e- tiibl i-. h eligib i lity to? 
registration by- notification shall bt» attached 1 . 
Supplemental information demonstrating eligi- 
bility lor registration under this provision and the 
documents and information called lor by OS. 
78A-25(b) shall be attached 



Statutory Authority G.S. 78A-25; 78A-49(a). 

.1303 REGISTRATION BY QUALIFICATION 

(a) Application for registration by qualification 
shall be filed with the administrator using the 
Uniform Application 4w Qualification t4 Seen 
n ties I nder State Blu e S4ry- 1 aw s t+p form 4 — 4 
To Register Securities (l'orm I ' - 1 ) . Documents 
necessary to establish eligibility for registration 
by qualification shall be attached. 

Statutory Authority G.S. 78A-49\ as. 

.1304 SECURITIES REGISTRATION AND 
FILING FEES 

(a) All fees (registration and tiling) are payable 
to the Office of the Secretary of State and shall 
be submitted with the application for original, 
renewal, or additional registration. 4 4w regis 
t rat ion t^ Ht*4- granted by 4>e administrator h* 4k* 
registration 4 withdrawn by- 4h* appl i cant. 4h* 
registration 4e w-4l b«^ returned c+«4 4n* filing W 
»4" e+h* hundred dollars ( > | i > i l . i " ) | w-4f be retained 
bv 4te administrator. The registration fee shall 



be retained by the administrator, except where 
the registration is not granted b\ the administra- 
tor or where the registration m withdrawn at the 
request of the applicant and w ith the consent of 
the administrator. The filing tee shall be retained 
hv the administrator in aH cases. 

(b) The aggregate offering amount of an ori- 
ginal or amended registration may be increased 
prior to or after the effectiveness of the registra- 
tion by providing the administrator the following: 

( 1 ) An additional registration tiling fee of fifty 
dollars ($50.00); 

(2) The appropnate registration fee calculated 
in the manner specified in G.S. 78A-2S(b), 
provided the maximum registration fee 
has not been paid; and 

(3) An amendment to the Uniform Applica- 
tion to Register Securities (l'orm U-l). 

f-H A statement t4 t4e aggregate offering 
amount effective by original h* amended 
registration eH+4 4n* total registration G.S. 
7SA 2.V(b). 
.Additional registrations shall be effective when 
the administrator so orders. The registration 
statement for a mutual fund or open-end man- 
agement company mav specify an indefinite ag- 
gregate otfenng amount it such offering amount 
is sinularh registered with the Securities and 1 x- 
change Commission. 



(c) A registration statement relating to securi- 
ties issued or to be issued by a mutual fund, 
open-end management company, or unit invest- 
ment trust. &f relating to other redeemable '. ecu 
lilies, to be offered for a period in excess of one 
year, must be renewed annually by payment of a 
renewal fee of one hundred dollars ($100.00) and 
by filing the following: 

A copy of the current prospectus and any 
other offering materials; 
One copy of any amendments to the reg- 
istration statement not previously filed; 
and 

A I "niform Consent to Service ' *4 Pfeeess 
(Form y 2): tm4 
£4} (Jil A statement of the amount of securities 
sold in this state to date and the balance 
of unsold securities effectively registered in 
this state, expressed in dollars. 
The payment of the renewal fee and the filing of 
the listed documents and reports in this Rule- 
shall be made no earlier than November 15th 
and, to assure timely renewal, should be made 
no later than December 15th. Renewed must be 
perfected prior to December 3 1 of each year and 
failure to timely renew will result in the expira- 
tion of the registration statement. 



(1) 

(2) 



130 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



Statutory Authority G.S. 78A-28(b); 78A-28(j); 
78A-49(a). 

.1305 SPONSORSHIP BY DEALER 

(a) Except where the conditions of G.S. 
78A-2(2) (4^H d.3. or 78A-2(2)d.4. aremet.no 
securities will be considered for registration un- 
less the application therefor is sponsored by a 
North Carolina registered dealer with a statement 
of its desire and intent to offer such securities to 
the investing public in North Carolina. Spon- 
sorship of an issue by a North Carolina registered 
dealer may be accomplished by the dealer signing 
the application form as applicant, or in lieu 
thereof, the sponsoring dealer may wire or write 
the administrator stating its intention to sponsor 
the issue in this State. The statement of spon- 
sorship will not be accepted from the dealer's at- 
torney unless a power of attorney has been given 
to the attorney by the dealer and a copy of the 
power of attorney is submitted together with let- 
ter of sponsorship. 

Statutory Authority G.S. 78A-2(2); 78A-49(a). 

.1307 COMMISSION AND EXPENSES 

(c) In an application to register securities where 
warrants, options or rights to purchase shares 
below the offering price are granted to under- 
writers, dealers and other persons with respect to 
the public offering of securities, there shall be in- 
cluded in the calculation pursuant to Paragraph 
(a) of this Rule an amount equal to the difference 
between the lowest price at which the warrants, 
options or rights may be exercised and the public 
offering price of the securities at the time of ef- 
fectiveness of registration, less any amount paid 
for such warrants, options or rights. In cases 
where no market value for the warrants, options 
or rights exists, a presumed fair value of 20 per- 
cent of the public ottering price of the shares to 
which the warrants, options or rights pertain 
shall be used for purposes of the calculation of 
payments pursuant to Paragraph (a) of this Rule, 
unless evidence indicates that a contrary valu- 
ation exists. 



Statutory' Authority G.S. 78A-29(a)(2)f.; 
78A-49(a). 

.1308 ADVERTISING 

(b) Advertising t* »e+ required k> be (^4 with 
t4%e administrator Bftless specifically request e d w 
otherwise required by statute, ft4e e* order. If 
advertising is required to be filed with the SL 7 C 
or the NASI), and has been tiled with these 
agencies in a timelv manner, then no filing of this 
same advertising need be tiled with this division 



unless specifically requested by the administrator 
or otherwise required by statute, rule or order. 
(c) Except where the conditions of G.S. 
78A-2(2)d.3. or 7S.\-2(2)d.4. are met, all ad- 
vertising circulated w ithin this state for registered 
securities must carry the name of at least one 
North Carolina registered dealer which can le- 
gally make an offering of the securities in this 
state. 

Statutory Authority G.S. 78A-49(a). 

.1310 OFFERING PRICE 

(b) The final offering price information shall 
be filed in the following format: 
Re: (Title of Offering) 
Date sec effective: 
Total number of units, shares/ 

interests: 

Total aggregate dollar amount: 
Initial public offering price: 
Underwriting commission 

(percentage): 
States in_ which registration has 

been withdrawn. 

Statutory Authority G.S. 78A-26(c); 78A-49(a). 

.1312 REGISTRATION OF REAL ESTATE 
SECURITIES (REPEALED) 

Statutory Authority G.S. 78A-49(a). 

.1313 REGISTRATION OF DIRECT 
PARTICIPATION PROGRAM 
SECURITIES 

(a) As a condition to the registration of ta* 
shelter securities (other than ft*4 estate securities) 
a«4 t4*e registration e4 • »4 »f gas income seettfi 
t+esr direct participation program securities, the 
issuer or dealer(s) effecting sales of such securities 
pursuant to such registration shall: 

(3) require that the minimum initial cash in- 
vestment by each purchaser of ta* shelter 
such securities in this State be five thou- 
sand dollars ($5,000). Po* b4 e* gas m- 
cnmo securities, tbe minimum initial cash 
investment r . hull be tw» thousand five 
hundred dollars ($2,500). 

(b) The minimum investor suitability standards 
which shall be imposed for registered offerings 
of ta* sh e lter securities (other than Feal estat e se- 
curities) tm4 fof registered offerings c4 e+J- w gas 
incom e securities, direct participation program 
securities are as follows: 

(1) The investor shall either have a minimum 
net worth of two hundred twenty-five 
thousand dollars ($225,000) or a mini- 
mum net worth of sixty thousand dollars 



NORTH CAROLINA REGISTER 



131 



PROPOSED RULES 



($6(1.000) and had during the last tax year 
or estimates that the investor will have 
during the eurrent tax year, taxable in- 
eome (if at least sixty thousand dollars 
($60,000) without regard to the invest- 
ment in the sceurity. 4» 4+* ««** &f ml 
c+h4 s»* income seettHties^ t4*e ins*-" . tor 
•. hall has e * minimum H^t- v . oilh h+ b«^ 
hundr e d thousand dollar ', ($ l 'l l l .OOd) b* <* 
minimum Hr4 worth h+ t wonts fise thou 
.. and dollar '. ( $25. ODD) *b4 »«■ annual m- 
come t-4 at le ast tsse - nts Us e thou . . and 
dollar .. ($35.00 11 ). 
(c) I he administrator will permit the substi- 
tution of lower suitabilit\ standards and or min- 
imum initial cash investment, it such lower 



standards are eonsistent with the standards out- 
lined m the NASA. A pohev statement for that 
specific t\pe o[ program. (See CCI 1 S.ASAA 
Reports for such polic\ statements.) 
t*4 uh I he administrator may modify or waive, 
upon the showing of good cause, the require- 
ments of Paragraphs (a), *h4 (4*+ (_b| and ( c ) of 
this Rule, in whole or in part, with respect to a 
particular security, offering or transaction or the 
administrator may require higher investor suit- 
ability standards and minimum investment re- 
quirements with respect to a particular security 
offering or transaction where necessary for the 
protection of investors. 

Statutory Authority G.S. 7SA-49(a). 

.1316 REGULATORY DISCLAIMERS AND 
LEGENDS 

(a) A- pro '. pi ' cUu . f-t+f n registered .. ecunty '. hall 
contain t4+e following legend t-n+ 4* cos or w- bold 
tspo. exc e pt as pros idc - d m Paragraph 4>K- 

^04444 SIC I Rl I II S . ADMIN1S I RA TOR 
HA* >444 PASSED ETON THE MER 
ffS- (4R- QUAI 1EICATIONS ©P; Q44 
RECOMMENDED (444- GIVEN 444- 
PROX - AE 444 444E- SECURITIES 
111 RIB)' OITLRM) 444R Hr« 444P 

securities division op 444P 

NOR 111 (. AROl INA Dl PARTM1 NT 
OP SECRETARY OP SI Alb PASSED 
1 PON 444P ACCURACY ©ft 4444- 
QUACY OP PH4S PROSPECTUS. ANY- 
RhPRbShN riAIION 444 4444- C-44N- 
1 RARV 4* A- CRIMINAL Obi 1 NS I ■." 
The tollowmg information (to the extent appro- 
priate) shall appear on the cover page of the 
prospectus or anv alternative document, bv 
whatever name known, utilized for the purpose 
of ottering and selling securities: 

( 1 ) The following statement m capital letters 
printed in bold-face roman type at_ least 



as high as ten-point modem type and at 

least two points leaded: 
IN MAKING AN INVESTMENT 1)1 CE 
SION INV1 STORS MUST Rl I V ON 
II II 1R OWN EXAMINATION OF fill 



PERSON OR ENTITY CREATING THE 



SECT Rl I II s and mi-: TERMS Ob 
1 lib OFFERING. INC I UDING fill 
Ml RMS AND RISKS INVOI VI D 
I III SI SECURITIES HAVE NOT BEEN 
Rl COMMI ND1 D BV ANV FJEDERAj 
OR SIX II 
SION 



SECURITIES COMMIS- 



OR 



EGULATORY AUTHOR- 



ITY 



FURTHERMORE 



1! 



FOREGOING AUTHORITIES HAM 



NOT CONFIRMED 111b ACCURACY 



ADEQUACY 
ANV Rl PRI- 



OR DEI ERMINE!) I 111 

Ob 1 Ills |)( )( I MINI _ 

SI N I VI ION IP I III CONTRARY IS 

A CR1M1NAI OFFENSE. 



and: 



If an application for registration relating 
to these securities has not been tiled with 
the Securities and Exchange Commission, 
the following statement in capital letters 
printed in bold-taee roman type at least 
as high as ten-point modern t\ pe and a[ 
least two points leaded: 
111 SI- SECURITIES ARE SUBJECT 



IP 

I PANS I 



RESTRICTIONS 



ABI 



V AND 



ON 

RbSAI I 

AND MAY NOT BE TRANSFERRED 
OR Rl SOI D 1 XCEP1 AS PERMITTED 
I ND1 R THE SECURITIES ACT OF 
l'J33. AS AMENDED. AND I III AP- 
Pl ICABI I S FATE SECURITIES 

I AW S. PURSUANT TO REGIS ERA- 
I ION OR EXEMPTION THEREFROM. 



INVESTORS SHOUI P BE AWARE; 
THAT I 111 V \\ II 1 BE REQUIRED TO 
BEAR HIE EINANCIAI RISKS OF 
I HIS INA ESI MEN [T 1 OR AN INP1 1 I- 
NIIF PERIOD OE TIME. 



(b) Any prospectus which depicts the United 
States Securities and Exchange Commission's 
comparable legend pursuant to a registration 
statement filed under the Securities Act of 1933 
or a letter of notification under Regulation A or 
a schedule under Regulation B of the General 
Rules and Regulations of the Securities Act of 
1933 will be considered in compliance with Par- 
agraph (a). 

Statutory Authority G.S. 7SA-49(a). 

AMI AMENDMENT OF FILINGS 

Where any information in or exhibits attached 
to a registration statement is amended in any way 



132 



\ORTH CAROLINA REdlSTER 



PROPOSED RULES 



subsequent to the filing of such statement, the 
applicant shall tile with the administrator in a 
timely fashion a copy of such registration state- 
ment and exhibits with such amendments clearly 
marked thereon. 



(2) F : ce in the amount of wh* hundred f+f+y 
do l larr . ($150.00) two hundred dollars 
($200.00) for the dealer renewal payable 
to the North Carolina Secretary of State; 
and 



Statutory Authority G.S. 78A-49(a). 



Statutory Authority G.S. 7SA-37(b). 



.1318 AUTOMATIC WITHDRAWAL OF 

APPLICATION FOR REGISTRATION 

Where an application for registration of a secu- 
rity has remained pending for at least one year 
following the date of its filing, and the delay in 
completion of its examination by the adminis- 
trator is due to a deficiency in filing attributable 
to the applicant, the administrator shall withdraw 
such application automatically and shall retain 
all fees submitted with it. 

Statutory Authority G.S. 78A-29(a); 78A-49(a). 

SECTION .1400 - REGISTRATION OF DEALERS 
AND SALESMEN 

.1401 APPLICATION FOR REGISTRATION 
OF DEALERS 

(a) The application for registration as a dealer 
shall contain the following: 

( 1 ) an executed Uniform Application for 
Registration as a Dealer (Form BD) and 
the appropriate schedules thereto or the 
appropriate successor form; 

(2) a fee in the amount of ww hundred fi4+v- 
dollur ;. ($150.00); two hundred dollars 
($200.00); 

Statutory Authority G.S. 7SA-37(b). 

.1402 APPLICATION KOR REGIS! RATION 
OF SALESMEN 

(a) The application for registration as a sales- 
man shall contain the following: 

(1) an executed Uniform Application for Se- 
curities and Commodities Industry Rep- 
resentative and or Agent (Form L -4) or 
the appropriate successor form; 

(2) a fee in the amount of tw e nty Fis e dollar *. 
($25.00); forty-five dollars ($45.00); 

Statutory Authority G.S. 78A-37(b). 

.1406 EXPIRATION AND RENEWAL OF 
DEALER REGISTRATION 

(c) A non-NASD member firm shall renew by 
filing the following with the administrator at least 
15 days before the expiration date: 
(1) Application of Dealer In Securities For 
Renewal Of Registration; 



.1407 EXPIRATION AND RENEWAL OF 
SALESMAN'S REGISTRATION 

A salesman's registration shall expire on De- 
cember 31 of each year unless renewed. A dealer 
shall file the following at least 1 5 days before the 
expiration date to renew its salesmen's registra- 
tion: 

(1) Dealers that arc NASD member firms shall 
renew all salesmen by complying with the 
procedures for renewal of salesmen as re- 
quired by the NASAA/NASD Central Reg- 
istration Depository along with the payment 
of twenty five - dollum ($25.00) forty-five 
dollars ($45.00) for each salesman made- 
pa) able to the National Association of Se- 
curities Dealers. 

(2) Dealers that are non-NASD member firms 
shall renew all salesmen by filing with the 
Securities Division a listing of all salesmen 
to be renewed along with their current ad- 
dresses and social security numbers. The 
salesman renewal list shall be submitted in 
alphabetical order as follows: last name, 
first name, middle name or maiden name; 
current address; social security number. A 
fee of twenty five dollars ($25.00) forty-five 
dollars ($45.00) for each salesman made 
payable to the North Carolina Secretary of 
State shall be submitted along with the 
salesman renewal list. 

Statutory Authority G.S. 78A-37(b). 

.1409 TRANSFER OF SALESMAN'S 
REGISTRATION 

(a) In order to effect a transfer of registration 
of a salesman from one registered dealer (the 
"previous dealer") to another registered dealer 
(the "new dealer"), the administrator shall be 
provided the following information: 

(2) Uniform Application for Securities and 
Commodities Industry Representative 
(Form U-4) to be provided by the new 
dealer, accompanied by a fee of tw e nty 
f+v* dollar ;. ($25.00) " forty-five dollars 
($45.00) for issuance of the new registra- 
tion, pursuant to the requirements of Rule 
.1402 of this Section. 

Statutoiy Authority G.S. 7SA-49(a). 



NORTH CAROLINA REGISTER 



133 



PROPOSED RULES 



.1411) BONDS/DEPOSITS OF CASH OK 
SIX I RITIKS REQl [RED FOR 
DEALERS 

(c) For the purposes of this Rule, "Net 
Capital" shall mean the excess of total assets over 
total liabilities as determined by generally ac- 
cepted accounting principles, except that if any 
of such assets have been depreciated, then the 
amount of depreciation relative to any particular 
asset may be added to the depreciated cost of 
such assets to compute toted assets; provided 
however, that the amount resulting after adding 
such depreciation does not exceed the fair market 
value of the asset. In the case of an individual, 
the assets on his balance sheet may be carried at 
estimated fair market value, with provisions for 
estimated income taxes on unrealized gain. For 
the purpose ol calculating the appropriate 
amount of surety bond which may be required 
pursuant to this Rule, net capital may be pre- 
sumed to be zero ( j*0.00) in situations in which 
a dealer's liabilities exceed the dealer's assets. 



Statutory Authority G.S. 78A-37(d); 78A-49(a). 

.1414 DISHONEST/UNETHICAL PRACTICES 
OF DEALERS AND SALESMEN 

(b) Dishonest or unethical business practices 
in the securities business as used in G.S. 
78A-39(a)(2)g. with regard to dealers include, but 
are not limited to. the following: 

(31) Representing the availability of financial 
or investment planning, consultation, or 
advisement when the representation does 
not accurately describe the nature of the 
services offered, the qualifications of the 
person offering the services, and the 
method of compensation for the services; 

(32) 1 n 'jawing in an act or a course of conduct 
which resulted in the issuance bv a secu- 



rities agency or administrator of anv state 
of an order to cease and desist the vio- 
lation of the provisions of anv state's se- 
curities act or rules (or the equivalent ot 
anv such order); or 
(-44+ (}}) Any other acts or practices that may 
be determined by the administrator to 
constitute dishonest or unethical practices 
in the securities business. 
Dishonest or unethical business practices in 
securities business as used in G.S. 
78A-39(a)(2)g. with regard to salesmen include, 
but are not limited to the following: 

(10) Engaging in conduct specified in Sub- 
paragraphs (b)(1). (2). (3), (4). (5), (6), 



(c) 
the 



(7), (8), (9), (10), (12), (13), (15), (16), 
(19), (20). (21). (22). (2>). (26). tw (31), 
or (32) of this Rule; or 

Statutory Authority G.S. 7SA-39(a)(2)g.; 
78A-49(a). 

SECTION .1500 - MISCELLANEOUS 
PROVISION'S 

.1504 REQUEST FOR INTERPRETATIVE 

OPINIONS AND NO-ACTION LETTERS 

(a) Requests for interpretative opinions and 
"no-action" letters shall be directed to the ad- 
mmistrator and shall contain the following: 

(5) a fee in the amount of te» dollars ($40.00). 
one hundred fifty dollars (% 150.00). 

Statutory Authority G.S. 78A-50(e). 

.1509 FORMS 

The following forms are available upon request 
from the Securities Division: 

(-4+ Registration by- Notification: 
(4+ U| Uniform Application to Register Secu- 
rities (Form U-l); 
(■4+ I 'nifonn Application fof Qualification t+f 

Securities Under State Blue **k-v I aws; 
(-4+ [2j_ Uniform Application for Registration 

As a Dealer (Form BD); 
f4+ (3) Supplement to Schedule F of Form 

BD; 
(4*+ M_[ Uniform Application for Securities and 

Commodities Industry Representative 

and or Agent (Form U-4); 
(-4+ Application t-4 Dealer h+ Securities F©f 

Runi ' wal t4 Registration; 

(6) (5) Uniform Termination Notice for Secu- 

rities Industry Registration (Form U-5); 

f4+ [6} Uniform Consent to Service of Process 
(Form U-2): 

(444+ [7). Uniform Form of Corporate Resol- 
ution (Form U-2A); 

(-1-4+ (_S| North Carolina Securities Administra- 
tor's Dealer Bond (Form NCDB); and 

(44+ (9| Certification of Deposit of Cash or 
Securities (Form CDCS). 

Statutory Authority G.S. 78A-49(a); 78A-49(b). 

TITLE 24 INDEPENDENT AGENCIES 



i V oticc is hereby given in accordance with G.S. 
I SOB- 1 2 that the North Carolina Housing Finance 
. I gency intends to amend regulation cited as 24 
NCAC01L .0201. 



l.U 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



1 he proposed effective date of this action is 
September 1. 1988. 

1 he public hearing will be conducted at 3:00 
p.m. on June 16, 1988 at North Carolina Housing 
Finance Agency, 3300 Drake Circle, Suite 200, 
Raleigh, North Carolina 27607. 

(„ omtnent Procedures: Written comments con- 
cerning this ride must be submitted by June 16. 
1988 to the A PA Coordinator, XCHFA 3300 
Drake Circle, Suite 200. Raleigh, NC 27607. 

CHAPTER I - N.C. MOUSING FINANCE 
AGENCY 

I - RENTAL KKII VBILITATION 
PROGRAM 



SUBCHAPTER 



SECTION .0200 - PROGRAM 
IMPLEMENTATION 

.0201 ADOPTION OF HUD PROGRAM BY 
REFERENCE 

(a) The interim regulations, effective May 24, 
19S4, implementing the Rental Rehabilitation 
Program authorized by Section 17 of the United 
States Housing Act of 1937, published **«• April 
aOr 4-0X4 at p*ge* 16036 through 16' ) 5 7 ©f V44- 
unio 4% rVHr 3g t4 in the Federal Register and 
codified as 24 CFR Part 511 and any amend- 
ments thereto effective *s ef the e ffective 4r+fe t*f 
Ats Rulo ate hereby adopted by- reference. 
Amendment '. t» 24 C 1 ■ R R«rt- ^44- which become 
e ff e ctive alter the effective dtrte h+ (4++*- Rul e Sf» 
ho* included m- t4+t*r adoption adopted by refer- 
ence under Ci.S. 15UB-14(c). b**4- m*v hereafter 
be adopted by (4n* agency by subs e qu e nt 
rulemaking. 

(b) Copies of 24 CFR Part 511 may be in- 
spected in the agency's offices at 434 North 
Blount Street, 33u() Drake Circle, Suite 200, 
Raleigh, North Carolina. Copies of 24 CFR 
Part 5 1 1 mav be obtained bv writinsz the agency 
at P.O. Box 2S066, Raleidi, North Carolina 
27611. 

Statutory Authority G.S. 122A-5(1); 150B-14(c). 

TITLE 25 - OFFICE OF STATE 
PERSONNEL 



1 he proposed effective date of this action is 
September I, 1988. 

1 he public hearing will be conducted at 9:00 
a.m. on June 17, 1988 at 101 West Peace St., 
Raleigh, N.C. 27611. 

y^omment Procedures: Interested persons may 
present statements orally or in writing at the 
hearing or in writing prior to the hearing by mail 
addressed to: Drake Maynard, Office of Slate 
Personnel, 1 16 W. Jones St., Raleigh, N.C. 2761 1. 

CHAPTER 1 - OFFICE OF STATE PERSONNEL 

SUBCHAPTER I.I - EMPLOYEE RELATIONS 

SECTION .0600 - DISCIPLINARY ACTION: 
SUSPENSION AND DISMISSAL 

.0610 SUSPENSION 

d) An employee may be suspended without 
pay for disciplinary purposes for causes re- 
lating to any form of personal conduct or in 
conjunction with a final written warning for 
performance of duties. However, a discipli- 
nary suspension without pay must be for at 
least one full working day, but not more 
than three working days. Prior to placing 
an employee on disciplinary suspension 
without pay, a management representative 
shall conduct a pre-suspension conterence 
with the employee. I his conference shall 
be carried out in the same fashion as a pre- 



dismissal conference. 
(6) An employee who has been suspended 
without pay must be furnished a statement 
in writing setting forth the specific acts or 
omissions that are the reasons for the sus- 
pension and the employee's appeal rights. 
Where susp e nsion is fef disciplinary reasons, 
a copy e4 the statement shall be forward e d, 
through administrative channels, frt* the 
Fmplov ee Relations Division &f tbe Office 
ef Stat e Personnel f-t*f (4*e purpose h4 moni 
toring (4te policy «*er A pre-suspension 
conference is required only when the em- 
ployee is suspended without pay for disci- 
plinary reasons: a pre-suspension conference 
is not required where an employee is sus- 
pended without pay for the purpose of m- 
vestiaation. 



lvotice is hereby given in accordance with G.S. 
1 SOB- 1 2 that the Office of State Personnel State 
Personnel Commission intends to amend regu- 
lations cited as 25 NCAC U .0610 - .0611. 



Statutory Authority G.S. 126-4. 

.0611 DEMOTION 

(b) Disciplinary demotions may be accom- 
plished in several ways. The employee may be 



NORTH CAROLINA REGISTER 



135 



PROPOSED RULES 



demoted to a lower classification with or without reasons, a management representative must con- 

a loss in pay. Or. the employee may be reduced duet a prc-demotion con Terence with the em- 

to a lower step in the same pay grade with a pjOVe£ I his pre-dcmotion conference shall he 

corresponding loss of pay. In no event shall an accomplished in the same fashion as the pre- 

employee s pay be lowered below step one 01 T ~" 1 <• — — — — 

, ', ' ■ , . . , dismissal conference, 

his her current pay grade, unless the employee is 

demoted to a lower classification. Prior to the 



decision to demote an employee for disciplinary 



Statutory Authority G.S. 126-4(6); 126-35. 



116 NORTH CAROLINA REGISTER 



LIST OF RULES AFFECTED 



NORTH CAROLINA ADMINISTRATIVE CODE 
EFFECTIVE: Mav I, 19S8 



AGENCY 
DRPARTJVIENT OF ADMINISTRATION' 

1 NCAC 5A .0008 - .0009 

5B .0310 
.1601 

DEPARTMENT OK AGRICULTURE 

2 NCAC 22A .0002 
DEPARTMENT OF COMMERCE 





4 NCAC 11 


.0101 - 


.0102 






.0201 - 


.0202 






.0301 - 


.0302 






.0401 - 


.0404 






.0501 - 


.0503 






.0601 






U 


.0101 - 

.0201 

.0301 


.0102 




BOARD OF ELECTIONS 








8 NCAC 8 


.0004 






9 


.0001 - 


.0005 




DEPARTMENT OF HUMAN 


RESOl 


RCES 




10 NCAC 311 


.0108 
.0210 
.0216 
.0218 
.0315 
.1003 






8A 


.1102- 


.1103 




24A 


.0504 
.0607 






45H 


.0202 






47A 


.0507 






49 B 


.0309 
.0312 








.0605 






.0609 






DEPARTMENT OF INSURANCE 





11 NCAC 13 .0507- .0508 

DEPARTMENT OF JUSTICE 



ACTION TAKEN 



Amended 
Amended 
Amended 



Repealed 



Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 
Adopted 



Temp. Adopted 
Expires 08-31-88 
Temp. Adopted 
Expires 08-31-88 



Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Adopted 



Amended 



NORTH CAROLINA REGISTER 



137 



LIST OF RULES AFFECTED 



12 NCAC 71) .0104 Amended 

.0111 Adopted 

.0701 Amended 

.0801 Amended 

DEPARTMENT OF CRIMF CONTROL AM) PI BLIC SAFETY 



14A NCAC 2 .0104 Amended 

7 .0504 Adopted 

SB .0101 Amended 

9B .0101 Amended 

9H O701 Amended 

.0702 " Repealed 

10A .0005 Amended 

10B .0206 Amended 

l)H' \RTMFVF OF \ Ml K M RFSOj RCES AM) COMM1MTV OF\ FFOI'MFVF 

15 NCAC IB .0120 Amended 

2B .0315 Amended 

711 .0503 Amended 

[OF .0310 Amended 

.0353 - .0354 Adopted 

13L .0103 Amended 

.0401 Amended 

.0403 - .0404 Amended 

.0407 Amended 

.0502 Amended 

.0702 Amended 

.0901 Amended 

.0903 Amended 

.0905 Amended 

.0907 Amended 

.0909 Amended 

.0911 - .0913 Amended 

.1002 Amended 

.1004 Amended 

.1006 Amended 

.1009 Amended 

.1011 Amended 

.1302 Amended 

.1402 - .1403 Amended 

.1501 - .1505 Adopted 

L3P .0101 - .0104 Temp. Adopted 

Expires 10-01-88 

.020 1 - .0202 Temp. Adopted 

Expires 10-01-88 

.0301 - .0303 Temp. Adopted 

Expires 10-01-88 

.0401 - .0403 Temp. Adopted 

Expires 10-01-88 

.0501 - .0505 Temp. Adopted 

Expires 10-01-88 

.0601 - .0604 Temp. Adopted 

Expires 10-01-88 



HO\RI) OF ( OSMKIK \R I 1^ \MIMRS 

21 NCAC 14E .0005 Amended 



13S NOR TH CAROLINA RECIS TER 



LIST OF RULES AFFECTED 



14G 


.0003 




.0011 




.0013 


141 


.0302 


14L 


.0101 




.0214 


14M 


.0004 




.0006 



.0014 



Amended 
Amended 
Amended 
.Amended 
Amended 
Amended 
Amended 
Amended 
Amended 



BOARD OK HEARING AID DEALERS AM) FITTERS 



21 



NCAC 22A 



22B 



22C 



221) 



22E 



22F 



.0101 - 


.0105 


.0201 - 


.0202 


.0203 - 


.0204 


.0205 - 


.0206 


.0301 




.0302 




.0303 




.0304 - 


.0306 


.0307 - 


.0312 


.0101 




.0102 - 


.0107 


.0201 - 


.0204 


.0301 




.0302 




.0303 - 


.0306 


.0307 




.0308 - 


.0309 


.0401 - 


.0402 


.0501 




.0502 




.0503 




.0504 - 


.0507 


.0601 - 


.0602 


.0101 




.0102 




.0201 - 


.0205 


.0301 - 


.0304 


.0401 - 


.0402 


.0501 - 


.0504 


.0601 - 


.0602 


.0701 - 


.0702 


.0801 - 


.0808 


.0901 - 


.0902 


.0903 




.0904 - 


.0911 


.0101 - 


.0105 


.0201 - 


.0205 


.0301 - 


.0310 


.0401 - 


.0402 


.0501 - 


.0503 


.0101 - 


.0103 


.0201 - 


.0205 


.0001 




.0002 




.0003 - 


.0005 


.0006 




.0007 - 


.0008 



Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Adopted 

Amended 

Repealed 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Repealed 

Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

.Amended 



NORTH CAROLINA REGISTER 



139 



LIST OF RULES AFFECTED 









.0009 










.0010 










.1)011 - 


.0012 








.0013 - 


.0016 








.0017 










.0018 










.0019 










.0020 








22G 


.0001 - 


.0002 






221 1 


.0001 - 


.0002 






221 


.0001 

.0002 

.0003 

.0004 - 

.0006 

.0007 

.0008 - 


.0005 

.0013 






211 


.0001 
.0002 - 
.0004 
.0005 
.0006 
.0007 - 
.0011 - 
.0014 


.0003 

.0010 
.0013 






22K 


.0001 - 


.0004 


BOARD 


OK 


MEDICAL EXAMINERS 




21 




NCAC 3211 


.0101 - 

.0201 - 
.0301 - 
.0304 
.0401 - 
.0407 
.0501 - 
.0505 
.0601 - 
.0603 
.0701 - 
.0801 - 
.0901 - 
.1001 - 


.0102 
.0202 
.0303 

.0406 

.0504 

.0602 

.0702 
.0802 
.0903 
.1004 


HOARD 


OF 


M ksim; 


.0110 




21 




NCAC 36 










.0112 - 


.0113 








.0208 










.0211 










.0310 




im\Ri) 


OF 


PHYSICAL THERAPY 




21 




NCAC 48A 
48C 
48D 


.0003 
.0302 
.0003 
.0005 - 
.0009 - 


.0006 
.0010 



Repealed 

.Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Repealed 

Adopted 

Amended 



.Amended 

Amended 

Amended 

Repealed 

Amended 

Adopted 

.Amended 

Adopted 

Amended 

Repealed 

Amended 

Amended 

Amended 

Amended 



Amended 

.Adopted 

Amended 

Amended 

Amended 



.Amended 
Amended 
Amended 
Amended 
Amended 



140 



NORTH CAROLINA REGISTER 



LIST OF RULES AFFECTED 







48E 


.0101 
.0104 - 
.0110 


.0105 






48F 


.0001 - 


.0003 






48G 


.0104 
.0203 








48H 


.0102 
.0103 
.0104 




BOARD OK 


REFRIGERATION EXAMINERS 


21 


NCAC 


60 


.0102 - 

.0205 

.0208 

.0301 - 

.0303 

.0305 

.0309 

.0311 

.0401 - 

.1103 - 


.0103 
.0302 

.0404 
.1104 


HOUSING 1 


1 NANCE 


IK 


.0601 - 




24 


NCAC 


.0605 


OFFICE OF 


ADMINISTRATE E HE 


ARINGS 



Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Repealed 
Adopted 



Amended 

Repealed 

Adopted 

Repealed 

Amended 

Repealed 

Repealed 

Adopted 

Repealed 

Amended 



Temp. Adopted 
Expires 10-19-88 



NCAC 2B .0103 Amended 



NORTH CAROLINA REGISTER 141 



NCAC INDEX 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT 

1 Administration, Department of 

2 Agriculture. Department of 

3 Auditor, Department of State 

4 Commerce, Department of 

5 Corrections, Department of 

6 Council of State 

Cultural Resources, Department of 

8 Flections, State Board of 

c > Governor, Office of the 

10 Human Resources, Department of 

1 1 Insurance, Department of 

12 Justice, Department of 

13 I abor, Department of 

14A Crime Control and Public Safety, Department of 

15 Natural Resources and Community Development, Department of 

16 Education, Department of 

17 Revenue, Department of 

IS Secretary of State, Department of 

19A Transportation, Department oi 

20 Treasurer, Department of State 

*2I Occupational Licensing Boards 

22 Administrative Procedures 

23 Community Colleges, Department of 

24 I lousing Finance Agency 

25 State Personnel. Office of 

26 Administrative Hearings, Office of 



NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CHAPTER LICENSING BOARDS 

2 Architecture, Board of 

4 Auctioneers, Commission for 
6 Barber Examiners, Board of 

5 Certified Public Accountant Examiners, Board of 
10 Chiropractic Examiners, Board of 

12 Contractors. I icensing Board for 

14 Cosmetic Art Examiners, Board of 

16 Dental Examiners, Board of 

18 Electrical Contractors, Board of Examiners of 

20 Foresters, Board of Registration for 

21 Geologists, Board of 

22 Hearing Aid Dealers and Fitters Board 

26 1 andscape Architects, Licensing Board of 

28 landscape Contractors, Registration Board of 

3 1 Martial & Family Therapy Certification Board 

32 Medical Examiners, Board of 

33 Midwifery Joint Committee 

34 Mortuary Science, Board of 

36 Nursing, Board of 

37 Nursing Home Administrators, Board of 

38 Occupational Therapists. Board of 
40 Opticians, Board of 

42 Optometry, Board of Examiners in 



142 I\()R TH CA ROLINA REGIS TER 



NC AC INDEX 



44 
46 
4S 
50 
52 
53 
54 
56 
58 
60 
62 
63 
64 

66 



Osteopathic Examination and Registration, Board of 
Pharmacy, Board of 

Physical Therapy, Examining Committee of 
Plumbing and Heating Contractors, Board of 
Podiatry Examiners, Board of 
Practicing Counselors, Board of 
Practicing Psychologists, Board of 
Professional Engineers and Land Surveyors, Board of 
Real Estate Commission 
Refrigeration Examiners, Board of 
Sanitarian Examiners, Board of 
Social Work, Certification Board for 
Speech and Language Pathologists and 
Audiologists. Board of Examiners of 
Veterinary Medical Board 



NORTH CAROLINA REGISTER 



143 



CUMULA THE INDEX 



CUMULATIVE INDEX 

(April 1988 - March 1989) 



1988- 1989 
Paces Issue 



■; 



5 



1 - April 

2 - April 

3 - May 
114 145 . 4 - May 



26 - 108 2 - April 

109 - US 3- May 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

I: - I rrata 

EO - Executive Order 

FDL - final Decision Letters 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

I R A - I ist of Rules Affected 

M - Miscellaneous 

NT - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

1'R - Temporary Rule 



ADMINISTRATIVE HEARINGS 

Hearings Division, 76 PR 

COMMERCE 

Milk Commission. 120 PR 

CRIME CONTROL & PUBLIC SAFETY 

Alcohol I aw Enforcement, 4" PR 

ELECTIONS 

State Board of Flections. 120 PR 

EXECUTIVE ORDERS 

Executive Orders 68-71. 1 EO 

72,119 EO 

FINAL DECISION LETTERS 

Voting Riohts Act, 5 I DI . 26 FDL 



HUMAN RESOURCES 

Dam Commission. 1 13 FR 
Health Sen-ices, 7 PR 



144 NOR TH CA ROUS A REGISTER 



CUMULATIVE INDEX 



Medical Assistance, 7 PR, 30 PR, 109 PR, 121 PR 
Office of the Secretary, 31 PR 
Social Services Commission, 27 PR 

INDEPENDENT AGENCIES 

Housing Finance, 21 PR, 134 PR 

INSURANCE 

Fire & Casualty, 32 PR 

1 ire & Rescue Services, 122 PR 

LICENSING BOARDS 

CPA, 73 PR 

Hearing Aid Dealers, 77 1 R 

LIST OF RILES AFFECTED 

April 1. 1988, 102 IRA 
May 1, 1988, 137 LRA 

NATURAL RESOURCES AND COMMUNITY DEVELOPMENT 

Coastal Management, 11 PR, 67 PR 

Community Assistance, 69 PR 

Forest Resources, 68 PR 

Marine Fisheries, 62 PR 

Soil and Water Conservation, 111 PR 

Wildlife Resources, 1 1 1 PR 

REVENUE 

License and Excise Tax, 113 1'R 

SECRETARY OF STATE 

Securities Division, 125 PR 

STATE PERSONNEL 

State Personnel Commission, 135 I'R 

STATE TREASURER 

Focal Government Commission, IS PR 



NOR TH CAROLINA REGIS TER 145 



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